This Memorial Day we recognized and reflected on the service and sacrifices of the men and women who gave their lives for our country. As we spent time with our family and friends over the holiday weekend, we are grateful for those who made those moments possible.
In observance of Memorial Day, Pinnacle Investments was closed on Monday, May 25.
The stock market rally pulled back in the beginning of last week as oil prices and Treasury yields jumped, but the indexes roared as crude futures and yields fell back, shrugging off negative earnings reactions to Nvidia (NVDA) and Walmart (WMT).
The Dow Jones Industrial Average jumped 2.1% in last week’s stock market trading, finally clearing its February all-time high, posting its third positive week in four.
The S&P 500 advanced 0.9% last week, marking its eighth straight winning week and its longest weekly win streak since late 2023.
The Nasdaq Composite (Nasdaq) lagged with Nvidia and Google parent Alphabet (GOOGL), the two biggest megacaps, down solidly last week. The Nasdaq added 0.5% and notched its seventh weekly advance in the past eight weeks.
The small-cap Russell 2000 leapt 2.7% last week, very close to record highs.
The 10-year Treasury yield fell 2.5 basis points to 4.57% for the week after hitting a 52-week high of 4.69% on Tuesday.
The 30-year yield hit its highest level in nearly 19 years that day, as traders feared a prolonged U.S.-Iran war would keep oil prices elevated and put upward pressure on inflation. The 30-year bond yield also reversed more than 4 basis points on the week to close around 5.06%.
Last Friday, International Brent crude futures closed at $103.54 per barrel, while West Texas Intermediate crude tumbled 4.4% to $96.60 a barrel last week.
The S&P Global Purchasing Managers’ Index for manufacturing moved into optimistic expansion territory and services demand was subdued by rising prices and ongoing job cuts. Pending home sales increased month-over-month (MM) as buyers entered the peak selling season, while housing starts declined.
Federal Open Market Committee (FOMC) meeting minutes, which were described as hawkish, focused on inflation expectations amid elevated economic uncertainty.
Qualcomm (QCOM) shares ripped almost 12% on Friday, posting a third straight winning session. The stock gained 18.2% last week after reporting second-quarter earnings results. The stock is up more than 50% since April 29. It’s rallied with other semiconductor stocks as investors have become enchanted again with the artificial intelligence trade.
Looking ahead to the holiday-shortened week, investors can expect the second print of Q1 Gross Domestic Product (GDP), along with personal income and personal spending. Other key releases will include housing market updates, durable goods orders, and consumer confidence.
Marvell Technology (MRVL), Dell Technologies (DELL) and Costco Wholesale (COST) are among the notable earnings reports this coming week. The Federal Reserve’s (Fed’s) favorite inflation gauge, the core PCE price index, is also on tap.
Hit the Looking Ahead link below where you will find a report from Wells Fargo. Below are excerpts from that research.
Week in review: May 18-22
- The S&P Global manufacturing and services PMIs for May were mixed as business activity remained constrained.
- The manufacturing sector reading rose to 55.3 points, its highest level in four years. Amid the Middle Eastern conflict, new order growth slowed, but input inventories rose at the sharpest rate in 11 months.
- The services sector reading declined to 50.9 points, slightly below expectations of 51.2. Rising prices, declining export orders, and consumer uncertainty drove subdued demand.
- FOMC meeting minutes from April showed that officials remained attentive to inflation pressures stemming from the Iran war and prior tariff impacts. Some officials leaned hawkish on potential rate hikes.
- April housing market data suggested that sentiment indicates a potentially strong selling season as buyers have experienced improved affordability since Midsummer 2025.
- Building permits increased 5.8% M/M to an annualized 1.44 million, a notable rebound from March’s seven-month low and exceeded expectations.
- Pending Home sales rose 1.4% M/M, the third straight monthly increase and up 3.3% year-over-year (Y/Y). Additionally, contract signings reached a five-month high, suggesting buyers remain optimistic despite mortgage rates.
- Housing starts declined 2.8% M/M to an annualized pace of 1.47 million units. Single-family starts declined 9% M/M, while multifamily starts saw a 14.3% M/M increase.
- The National Association of Home Builders’ Housing Market Index rose to 37 points in May, despite continued weakness in housing market conditions.
Looking Ahead to this week: May 25-29
U.S.
- The highlight of the week will be Thursday’s report on April personal income and spending, which includes the PCE Deflator. The first revision of Q1 GDP will be released that same day.
- Other potentially market moving releases include May’s consumer confidence and Market News International’s Chicago PMI, in addition to April’s advanced trade balance, preliminary wholesale inventories, and preliminary durable goods orders.
- Also on tap: April‘s Chicago Fed National Activity Index and measures of May economic activity from the regional Fed banks. Rounding out the docket is a flurry of housing market data, including April‘s new home sales and finalized building permits, dual measures of March house prices, and Q1 House Price Purchase index.
Asia
- In China, the focus will be on May’s official manufacturing and non-manufacturing PMIs, along with April’s industrial profits.
- From Japan, look for May’s, Tokyo Consumer Price Index (CPI) and Consumer Confidence Index, in addition to April’s retail sales, preliminary industrial production, jobless rate, services PPI, and housing starts.
- Elsewhere in the region, Australia’s April CPI, household spending, and private sector credit hit the tape along with Korea’s April industrial production and retail sales.
Europe
- In Europe, the highlight will be preliminary May CPI readings.
- From France, watch for May consumer confidence, April’s PPI and consumer spending, and finalized Q1 GDP. Also be on the lookout for Germany’s May employment claims.
